2. KEY FINDINGS Effective Measure surveyed over 12,000 Internet users in South Africa on their online shopping habits and uncovered the following key insights: 56% of respondents have shopped online. 48% are 25-44 years old. Both men and women shop online. Respondents live in Gauteng, KZN and the W Cape. 50% of respondents have a household income of R20,000+. The respondents are educated, with 58% having a post matric qualification and they are economically active, with over 60% working full-time. 57% are in a relationship or are married, and 20% have children aged 4-10, while 21% have no children. They are joint decision makers with 48% being a joint decision maker and 40% being the main decision maker. 87% accessed the internet yesterday and 26% spend 5+ hours on the Internet on an average day - a significantly higher proportion than those who spend 5+ hours a day on TV, radio or print. 38% are accessing the Internet via a mobile phone and 29% access from a work or personal computer. 59% of online shoppers prefer to do their online shopping on a desktop computer or laptop and 27% prefer to use their mobile phone. 55% are digital natives, being very similar to people who are at ease with computers, cell phones and new technology. 87% are very or quite similar. Email, search, banking, social networking, checking the weather and finding directions are the top six activities that online shoppers partake in online. 56% shop weekly or monthly. Books, tickets for events, travel tickets, hotel reservations and DVDs, videos or music are the top five items they purchased via the Internet. 59% say that an “on delivery” payment option would motivate them to do more online purchases. Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 1

3. KEY FINDINGS Effective Measure surveyed over 12,000 Internet users in South Africa on their online shopping habits and uncovered the following key insights: 58% of respondents prefer to pay on card and 23% would prefer to pay on delivery. Guaranteed returns at 41% is the overriding assurance that would make them feel most comfortable shopping online. They felt most comfortable doing their first online payment with bill payment merchants and least comfortable with automobile merchants. Travel tickets and books were the items most online shoppers purchased last. 45% received their online purchases within 1-2 working days. 74% received their purchase within 5 working days. 58% were very satisfied with the speed of delivery. 49% pay for delivery and 38% did not pay any delivery fee. Of those that paid, 58% paid between R200-299. Saving time, access to product reviews, special offers and price comparisons are the four main reasons online shoppers like to shop online. 72% use price comparison sites. Cheaper or free delivery, a payment method they can trust and an easy return policy are the three most important improvements that would make them shop online even more. Credit cards, bank transfers and debit cards are their preferred method of payment. Purchase discounts is the overriding incentive which would motivate online shoppers to do online shopping with a card. 65% shop online occasionally or only for certain products or services. 60% are happy with the level of online shopping they are doing at the moment. Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 2

4. KEY FINDINGS: A COMPARISON TO AMPS DATA To add a further dimension to the data, where appropriate the EM Online Survey data has been compared to the AMPS data. In order to ensure similar comparable bases, a base ﬁlter of “access the Internet ever” and “purchased online via a computer, laptop or mobile phone” were used as the AMPS ﬁlters. The key differentiators are: 1 The AMPS data skews younger with 47% falling in the 20-34 age category vs. 48% of the EM survey being 25-44. There were more male shoppers in the AMPS data at 54% vs. the EM survey at 51% male. AMPS online shoppers are more likely to reside in Gauteng at 48% and fewer reside in W Cape (11%) and KZN (12%). The EM survey results show 44% residing in Gauteng, 19% in W Cape and 15% in KZN. 48% of the AMPS online shopper base have a tertiary qualification and 40% have matric. The EM respondents have a higher education level, with 58% holding a tertiary qualification. 54% of the AMPS online profile work full-time, whereas 64% of the EM respondent base work full-time. AMPS shows a higher proportion of students at 17% vs. only 4% of the EM online shopper base. AMPS online shoppers are single at 51%, whereas the majority of EM online shoppers are in a relationship at 57%. 80% of AMPS online shoppers accessed the Internet yesterday. A larger proportion of EM online respondents accessed the Internet yesterday at 87%. EM online shoppers are significantly more inclined to be very similar to people who are at ease with computers, cell phones and new technology at 55%. Only 38% of the AMPS online shopper base is very similar. Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 3

5. KEY INSIGHTS What about those who do not shop online? Respondents tend to be female. 50% are 20-34 - respondents are younger. 47% reside in Gauteng and 13% in the W Cape. Economics is clearly a motivator for not shopping online with 50% having a household income of up to R11,999 and 20% being a dependent, having no income or not working. Far fewer hold a tertiary qualification at 35% vs. 58% of those who do shop online. Fewer work full-time at 43%, compared to 64% of online shoppers. A significantly higher proportion are single. Their children tend to be younger with 42% having children aged 0-10 years. 77% accessed the internet yesterday - the time frame between accessing the Internet is slightly longer. They spend less time online with only 19% spending 5+ hours online on an average day vs. 26% of online shoppers. 60% are accessing the Internet via their mobile device vs. only 38% of online shoppers. 69% of those who do not shop online describe their attitude as “I’m new to online shopping and still trying to find my way around.” A smaller proportion of people are very similar to people who are at ease with computers, cell phones and new technology at 39%. 41% don’t shop online because they are not used to it. 37% say they prefer to touch and feel before purchasing. 53% of those who said they did not trust online payments indicated zero liability or some form of online protection as a motivating factor to engage in more online shopping. 58% say a delivery payment option would motivate them to do more online payments. 43% prefer cash payments and 29% would prefer to pay by card. Guaranteed returns (35%) is the overriding assurance that would make them feel more comfortable shopping online. Cheaper or free delivery, a payment method they can trust and shorter delivery times are the three most important improvements that they would like to see. Purchase discounts are the biggest incentive which would motivate them to make online purchases with a card. Loyalty points are attractive to those who currently do not shop online vs. those who do. Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 4

10. DEMOGRAPHICS HOUSEHOLD INCOME AMPSEM50% of online shoppers have a household income of R20,000+. The AMPS data shows a higher proportion of online shoppers in the R30,000 - R49,999 household income group at 22%. 56% of the AMPS online shopper base has a household income of R20,000+. 8.93% R1 to R2,999 11.54% R3,000 to R5,999 14.68% R6,000 to R11,999 14.87% R12,000 to R19,999 14.55% R20,000 to R29,999 16.21% R30,000 to R49,999 19.22% R50,000+ 1.78% R1 to R2,999 6.53% R3,000 to R5,999 17.60% R6,000 to R11,999 18.50% R12,000 to R19,999 14.96% R20,000 to R29,999 22.36% R30,000 to R49,999 18.28% R50,000+ Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 9

11. DEMOGRAPHICS EDUCATION EM 58% of online shoppers have some form of tertiary qualification. AMPS 48% of AMPS online shoppers have a tertiary qualification and 40% have a matric. 30.56% Matric 30.19% University Degree 27.54% Technikon Diploma or Artisan Certificate 10.98% Some High School 0.74% No School or Some Primary 0.09% No School or Some Primary 39.73% Matric 22.35% University Degree 25.70% Technikon Diploma or Artisan Certificate 12.12% Some High School Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 10

12. DEMOGRAPHICS WORK STATUS AMPSEM64% of online shoppers work full-time. 54% of AMPS online shoppers work full-time. A far larger proportion are students at 17%. 3.76% Student or scholar 64.12% 8.29% Work part-time 7.90% Retired 7.05% Not working 8.88% Unemployed 17.38% Student or scholar 54.44% 6.75% Work part-time 3.46% Retired 4.79% Not working 13.18% Unemployed Work full-time or self-employed Work full-time or self-employed Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 11

13. DEMOGRAPHICS MARITAL STATUS EM57% of online shoppers are either married, living togteher or in a partnership. AMPS51% of AMPS online shoppers are single. 57.47% Married, living together or partnership 33.54% Single 8.99% Divorced, widowed or separated 4.60% Divorced, widowed or separated 51.00% Single 44.40% Married, living together or partnership Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 12

14. DEMOGRAPHICS CHILDREN 20% of online shoppers have children aged 4-10 in the home. 21% have no children. 21.44% No Children 19.65% 4-10 years old 12.05% 19 years old 10.47% 11-14 years old 9.90% 0-3 years old 9.84% 15-18 years old Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 13

20. INSIGHTS SIMILARITY TO THOSE WHO ARE AT EASE WITH NEW TECHNOLOGY 55% 38% 32% 38% 10% 14% 3% 6% Very similar Quite similar Not too similar Not at all AMPS EM The EM survey shows that 55% are digital natives and are very similar to people who are at ease with comput- ers, cell phones and new technology, whereas the AMPS data shows a lower proportion at only 38%. Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 19

23. SHOPPING FREQUENCY 56% are shopping online on a weekly or monthly basis vs. 45% who shop online on a yearly basis. 14% at least once a week 19% a couple of times a month 23% about once a month 30% a couple of times a year 15% once a year or less Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 22

29. SHOPPING DELIVERY TIME 45% of online shoppers received their online purchase within 1-2 working days. 74% received theirs within 5 working days. 29% 3-5 working days to deliver 58% were very satisfied with the speed of delivery. Very satisfied with speed of delivery 58% Fairly satisfied with speed of delivery Neither satisfied nor dissatisfied with speed of delivery Fairly dissatisfied with speed of delivery Very dissatisfied with speed of delivery 30% 6% 3% 3% 13% 5-10 working days to deliver 13% 10+ working days to deliver 45% 1-2 working days to deliver Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 28

33. SHOPPING IMPROVEMENTS 58% 48% 39% 32% 31% 28% 24% 22% 11% 6% Cheaper or free delivery A payment method that I can trust Possibility to return products or easy return process Shorter delivery times Loyalty rewards Easier-to-use websites Better availability of product information More information about special offers and promotion or advertising Better packaging If more of my friends or family do it Cheaper or free delivery, a payment method they can trust and an easy return policy are the three most important improvements that would make them shop online more. Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 32

35. SHOPPING SHOPPING HABITS 65% 60% 33% 21% 15% 7% I shop online occasionally or only for certain products and services I am happy with the level of online shopping I do at the moment In the near future, I will definitely be shopping online more than I do now I’m new to online shopping and am still trying to find my way around I try to buy as much online as I can I will be shopping online less in the future 65% of online shoppers shop occassionally or only for certain products or services. 60% are happy with the level of online shopping that they are doing at the moment. Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 34

41. OFFLINE SHOPPERS INCOME OFFLINE SHOPPERSONLINE SHOPPERS50% of online shoppers have a household income of R20,000+. Economics is clearly a contributing factor to not shopping online with 50% having a household income of up to R11,999 and 20% being a dependent, having no income or not working. 8.93% R1 to R2,999 11.54% R3,000 to R5,999 14.68% R6,000 to R11,999 14.87% R12,000 to R19,999 14.55% R20,000 to R29,999 16.21% R30,000 to R49,999 19.22% R50,000+ 15.23% R1 to R2,999 18.29% R3,000 to R5,999 15.38% R6,000 to R11,999 8.50% R12,000 to R19,999 6.29% R20,000 to R29,999 4.45% R30,000 to R49,999 2.56% R50,000+ 3.86% Dependent, no income, or don’t work 4.63% Prefer not to say 20.47% 8.84% R50,000+ Dependent, no income or don’t work Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 40

42. OFFLINE SHOPPERS EDUCATION ONLINE SHOPPERS58% of online shoppers have some form of tertiary qualification. OFFLINE SHOPPERS 46% of those that who do not shop online have a matric. A much lower proportion have a university degree than those who do shop online. 30.56% Matric 30.19% University Degree 27.54% Technikon Diploma or Artisan Certificate 10.98% Some High School 0.74% No School or Some Primary 1.33% No School or Some Primary 45.96% Matric 10.62% University Degree 24.06% Technikon Diploma or Artisan Certificate 18.04% Some High School Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 41

43. OFFLINE SHOPPERS WORK STATUS OFFLINE SHOPPERSONLINE SHOPPERS64% of online shoppers work full-time. 45% work full-time. 36% are unemployed or not working - a significantly higher proportion of those that do shop online. This confirms that economics plays a significant role in respondents not shopping online. 3.76% Student or scholar 64.12% 8.29% Work part-time 7.90% Retired 7.05% Not working 8.88% Unemployed 6.05% Student or scholar 42.83% 10.62% Work part-time 4.75% Retired 13.06% Not working 22.69% Unemployed Work full-time or self-employed Work full-time or self-employed Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 42

44. ONLINE SHOPPERS 57.47% Married, living together or partnership 33.54% Single 8.99% Divorced, widowed or separated OFFLINE SHOPPERS MARITAL STATUS A significantly higher proportion of those who do not shop online are single at 53%. OFFLINE SHOPPERS 53.31% Single 8.07% Divorced, widowed or separated 38.62% Married, living together or partnership Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 43

45. OFFLINE SHOPPERS CHILDREN 20% of online shoppers have children aged 4-10 in the home. 21% have no children. 21.44% No Children 19.65% 4-10 years old 12.05% 19 years old 10.47% 11-14 years old 9.90% 0-3 years old 9.84% 15-18 years old 15.54% No Children 27.88% 4-10 years old 13.15% 19 years old 13.71% 11-14 years old 14.34% 0-3 years old 12.16% 15-18 years old ONLINE SHOPPERS Those who do not shop online tend to have younger children, with 42% having children aged 0-10 years. OFFLINE SHOPPERS Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 44

50. OFFLINE SHOPPERS SIMILARITYTO THOSE WHO ARE AT EASE WITH NEW TECHNOLOGY 55% 39% 32% 36% 10% 19% 3% 6% Very similar Quite similar Not too similar Not at all Offline shoppers Online shoppers Comparing against those who do shop online, a significantly lower percentage (39%) of online shoppers are very similar to those who are at ease with computers. A higher proportion at 19%, are not too similar. Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 49

52. OFFLINE SHOPPERS REASONING The two overriding reasons that respondents do not shop online is that they are not used to it (41%), or they prefer to touch and feel before they buy (37%). Instilling confidence in consumers about the ease of online shopping would most certainly help convert them to online shoppers. I’m just not used to it 41% I prefer to touch and feel before I buy I do not trust online payment I do not trust the sites I’m afraid the products will not suit me I’m not very confident using the Internet 37% 23% 17% 11% 8% Delivery is too expensive 8% I’m not sure if I can return the products 7% Long delivery times 4% Products don’t interest me 4% Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 51

53. OFFLINE SHOPPERS MOTIVATIONS 53% Yes 47% No Out of those offline shoppers who said they did not trust online payments, a small majority of 53% said that zero liability or some other form of online protection would motivate them to purchase online more often. 58% No 42% Yes 58% say that an “on delivery” payment option would not motivate them to purchase online more often. Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 52

54. OFFLINE SHOPPERS PAYMENT METHOD 48% prefer to pay by card 48% of online shoppers prefer to pay by card and 23% would prefer to pay on delivery. 23% prefer to pay on delivery 14% prefer to pay by cash 10% prefer to pay in-app 5% prefer to pay by other means ONLINE SHOPPERS 43% of those who do not shop online prefer cash payments. 29% would prefer to pay by card compared to 48% of online shoppers. The preference for cash could be due to the younger profile of those who do not shop online and do not have access to credit cards yet. OFFLINE SHOPPERS 29% prefer to pay by card 18% prefer to pay on delivery43% prefer to pay by cash 2% prefer to pay in-app 8% prefer to pay by other means Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 53

55. OFFLINE SHOPPERS ASSURANCES Guaranteed returns at 41% is the overriding assurance that would make online shoppers feel more comfortable shopping online. 14% Cash 18% Trust mark 27% Card 41% Guaranteed returns ONLINE SHOPPERS OFFLINE SHOPPERSGuaranteed returns at 35% is the overriding assurance that would make offline shoppers feel more comfortable shopping online, along with cash also at 35%. Cash carries a much higher weighting with those that do not shop online compared to those who do. 35% Guaranteed returns 35% Cash 9% Trust mark 21% Card Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 54

57. OFFLINE SHOPPERS IMPROVEMENTS Cheaper or free delivery 58% 52% 48% 47% 32% 33% 28% 31% 39% 29% 32% 14% 22% 23% 24% 23% 6% 16% 11% 15% Offline shoppers Online shoppers Cheaper or free delivery, a payment method they can trust, and shorter delivery times are the three most important improvements that would make those who do not shop online begin to do so. A payment method that I can trust Shorter delivery times Easier-to-use websites Possibility to return products or easy return process Loyalty rewards More information about special offers and promotional advertising Better availability of product information If more of my friends or family did it Better packaging Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 56

59. OFFLINE SHOPPERS SHOPPING HABITS 65% 22% 60% 33% 33% 31% 21% 69% 15% 0% 7% 35% Offline shoppers Online shoppers 69% of those who do not shop online describe their attitude towards online shopping as, “I’m new to online shopping and am still trying to find my way around.” I shop online occassionally or only for certain products and services I am happy with the level of online shopping I do at the moment In the near future, I will definitely be shopping online more than I do now I’m new to online shopping and am still trying to find my way around I try to buy as much online as I can I will be shopping online less in the future Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 58

61. ABOUT Effective Measure is a leading provider of digital audience, brand and advertising effectiveness measurement and targeting solutions, bringing best practice online measurement data to premium publishers, agencies, networks, advertisers and researchers. The EM solutions offer brands, media and agencies invested in Oceania, Europe, Southeast Asia, Middle East North Africa and South Africa, a clear insight into their online audience and the ever-growing Internet population. www.effectivemeasure.com. ABOUT EFFECTIVE MEASURE The Interactive Advertising Bureau South Africa, formerly the DMMA, is an independent, voluntary, non-profit association focused on growing and sustaining a vibrant and profitable digital industry within South Africa. The IAB South Africa represents the digital industry across all sectors including the media, the marketing community, government and the public, and also acts as the channel through which international bodies can enter the South African digital market. The IAB South Africa currently represents over 96 local online publishers and over 93 creative, media and digital agencies, between them accounting for more than 16 million local unique browsers and 440 million page impressions. The IAB South Africa strives to provide members with a platform through which they can engage, interact and address digital issues of common interest, thereby stimulating learning and commerce within the South African digital space. To find out more about the IAB South Africa, visit the website www.dmma.co.za, Like them on Facebook https://www.facebook.com/thedmma or follow @iab_sa on Twitter. ABOUT THE IAB SOUTH AFRICA Visa Inc. (NYSE: V) is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world’s most advanced processing networks — VisaNet — that is capable of handling more than 65,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, pay ahead with prepaid or pay later with credit products. For more information, visit usa.visa.com/about-visa, visacorporate.tumblr.com and @VisaNews. ABOUT VISA Source: Effective Measure, December 2015-March 2016www.effectivemeasure.com PAGE 60